GuideStar Webinar (10/09/12) – More Money for More Good: 3 Steps to Help Nonprofits Fundraise

HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood

MONEY FOR GOOD II

How to Get More Money for More

Good

2012


Poll

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1. Who are you? a. Nonprofit professional b. Foundation program officer c. Philanthropy advisor d. Other

2. Have you heard of the Money for Good research?

a. Yes b. No

3. Have you downloaded our free Guidebook?

a. Yes b. No


Where it all started… (for Bob)

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To revolutionize philanthropy and nonprofit practice by providing information that

advances transparency, enables users to make better

decisions, and encourages charitable giving.


Hmmm…

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Money for Good research by Hope Consulting gave us pause. Do people actually care about information… and GuideStar?

Only 1/3 of donors research ~5% research to find the best NPO


Where this led

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• Surveyed 6,500+ individual donors, advisors, and grant-makers2

- Supported by the Gates Foundation, Hewlett Foundation, Liquidnet for Good

• Established these groups’ research

behaviors and unmet needs around: − Information − Format − Channel/source

• Surveyed 4,000 affluent Americans1

• Created a baseline of Americans’

giving and impact investing behaviors and preferences

• Found that while donors say that how well a nonprofit performs is important, few actively try to fund the “best” nonprofits`

Money for Good I: 2010 Money for Good II: 2011

1. Nationwide surv ey of Americans with HH income of $80K+, with ov er-sample of Americans with HH income of $300K+. 2. Nationwide surv ey of 5,075 donors, 875 donor adv isors, and 795 institutionally-affiliated grant-makers


Today’s goals…

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1. How donors, advisors, and foundation grant-

makers behave and research nonprofits today

2. What these groups want in terms of information on nonprofits

3. What nonprofits can do based on this information to improve their fundraising and operations


How nonprofits are researched…

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• Yup • Looking deeper we see that 20% are

core researchers, 30% occasional… • And research varies by cause area

and familiarity

• They research almost all recs/grants

• All groups get their info from the NPO • Individual donors rely on basic

information on the organization

• Do individual donors really only research 1/3 of donations?

• What about foundations & advisors?

• What information do people use and where do they get it?

We Wanted to Know… We found…


Few donors research charities – even fewer to find the ‘best’ nonprofits

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COMPARE RESEARCH CARE Care about nonprofit

performance Self described as doing ‘research’ before donating

Researched to compare nonprofits

Individuals

Advisors

Foundations

Supporting Details


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Some donors are more prone to research than others

Lost Cause Long Shots Occasional Core • No research in past • No research future • Will never research

• No research in past • Possible to convince

to research in future

• Show signs of researching, but not consistently

• Researched in past • Will research in

future

% research past % “action” past % Research > 1HR % Δ Behavior due to Research in past % Interest in HPNP % looked for “Effectiveness” info

14% 39% 19% 29% % Individual Donors 0%

38%

6%

38%

0%

7%

0%

49%

7%

51%

37%

14%

32%

83%

24%

70%

45%

40%

100%

100%

44%

73%

51%

62%

Supporting Details


87%

81%

74%

35%

0% 25% 50% 75% 100%

First-time donation

First-time,recommended by a

friend

Disaster relief donation

Repeat donation

33% 41%

58%

0%

20%

40%

60%

80%

100%

Average When NotBrand Name

When NotBrand NameOR Personally

Recommended

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However, donors are likely to research when they are not familiar with a nonprofit…

% of all respondents

% OF DONATIONS RESEARCHED

Source: M FGII

% THAT WOULD RESEARCH WHEN:

Supporting Details


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…or in particular cause areas

% OF GIFTS RESEARCHED

Source: M FGII

% OF DOLLARS RESEARCHED

Poverty 21%

Education 21%

Health 16%

Children 15%

Other 27%

0 62%

59% 50%

48% 47% 46%

41% 41% 40%

38% 38% 38% 36%

34% 31%

25% 22%

18%

0% 25% 50% 75%

InternationalInt'l Disaster Relief

Human RightsCommunity

EmploymentEnvironment

FoodPoverty

ChildrenWomenAnimal

Disaster ReliefEducation

HealthFundraising

ArtsReligion

Specific School --- average

Supporting Details


And what do donors, foundations, and advisors want?

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• They want a full picture of the NPO • They need more info on impact /

effectiveness

• What information do they want?



What donors want: Donors want a full picture of a nonprofit, and better information on effectiveness than they have today

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Donors look for info on: − Financials − Legitimacy − Cause − Organization − Effectiveness

Donors don’t find info on: − Effectiveness

Donors say they don’t care as much about: − Endorsements − Information

comparing nonprofits

Info

Im

porta

nt

Info

N

ot Im

porta

nt

Effectiveness Info on Cause Basic info on Org

Financials

Legitimacy

Comp. Info Endorsements

UNMET NEEDS MET NEEDS

NO NEEDS

Info

Im

porta

nt

Performance Weak

Performance Strong

Donor’s Information Needs

Supporting Details



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effectiveness

• Think “Consumer Reports”

• Nonprofits or • Organizations (like GuideStar) that

evaluate or provide info on nonprofits


• How do they want it packaged?

• Where do they want to get it?



Where they get information today: Today, the nonprofit itself is the donor’s leading source of information

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28%

25%

21%

16%

15%

14%

13%

13%

11%

10%

9%

6%

4%

2%

0% 10% 20% 30% 40%

Nonprofit's website

Friend or family member

Nonprofit solicitation

Beneficiary

Internet search

Site visit

Presentation/event

Someone at the nonprofit

Media report

Community foundation/funder

3rd party nonprofit portal (ex. GuideStar)

Expert

Grant proposal or annual report

Advisor

Sources Donors Use Today (check all that apply)

Source: MFGII

Sources prov ided by the nonprofit

Supporting Details


53%

48%

47%

39%

32%

28%

28%

24%

18%

18%

16%

12%

10%

0% 25% 50% 75% 100%

Nonprofit evaluation org (ex. GuideStar)

Evaluation org (e.g., Consumer Reports)

Certification org (ex. BBB)

Family and Friends

Nonprofit itself

Leading foundations

People involved with org.

Media

Expert panel

Government agency

Local community foundation

Leading university

General public

Where they will go tomorrow: But donors would prefer to use third-party portals or organizations

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MFGII. Q: “Who would you trust to prov ide the information that you are looking for?”. %’s reflect % of respondents rating source as a 5 or 6 on 1-6 scale

Sources Donors Would Prefer to Use

Supporting Details



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effectiveness

• Think “Consumer Reports”

• Nonprofits or • Organizations (like GuideStar) that

evaluate or provide info on nonprofits

• 5% … or $15,000,000,000


• How do they want it packaged?

• Where do they want to get it?

• Will they act differently?



The Opportunity: $15,000,000,000

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Nonprofits receive $300B annually from donations and grants

Based on our research, we believe that there is an opportunity to shift ~5% of that – or $15B – through better information

This implies a wonderful opportunity to shift more money to the best nonprofits

Supporting Details


So, let me understand…

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• No. Not that black and white • Giving is emotional • But people want to know they are

doing good w/ hard earned $$

• In some ways, yes • In others, we are changing

• Good question…

• Donors are rational, analytical beings that want a lot of data, especially on impact?

• GuideStar had it right all the time?

• That there are things nonprofits can do with this information???

Are you saying…


Collect, Communicate, Connect

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Before elaborating, another quick poll

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1. Have you heard of the GUIDESTAR EXCHANGE PROGRAM? a. Yes b. No

2. Do you have an updated GUIDESTAR EXCHANGE PROFILE?

a. Yes b. No c. I don’t know

3. Have you heard of CHARTING IMPACT?

a. Yes b. No

4. Have you heard of GREAT NONPROFITS?

a. Yes b. No



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1. Focus on impact. The unmet need. Show how well you are achiev ing your goals

2. Chart your impact. Answer five key questions that will bring you and your donors clarity on your approach and accomplishments. For more go to www.chartingimpact.org

3. Update / complete your GuideStar Exchange profile at http://bit.ly/GuideStarExchange

4. Use GreatNonprofits to gather input from stakeholders at www.greatnonprofits.org

http://www.chartingimpact.org

http://bit.ly/GuideStarExchange

http://www.greatnonprofits.org



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1. Lead with impact and competence. Donors want to be sure their money isn’t being wasted and that you are making a difference. They look to NPOs to find that info

2. Highlight third party accolades, like Philanthropedia, GreatNonprofits, Charity Nav igator

3. Update your GuideStar Exchange profile. You can link directly to it and it will populate many other portals.



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1. Know your donors. Donors are a diverse group and not everyone is going to be the right fit for your message. Make sure that you are talking to the right groups

2. Target your message. Make sure you tell your story in a way that appeals to each groups

3. Follow up. Thank your donors and let them know what you did with the money and how you are improv ing what you do. Don’t ruin it by asking for more


More Money for More Good – CAPTURE THE $15 BILLION!

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The Guide Includes: Info: In-depth findings on how individual donors, advisors,

and grant-makers use information today, and are likely to use information tomorrow

Insights: How nonprofits can increase fundraising and help create a more effective sector

Applications: Case studies of organizations that use information to drive donor engagement

Tips: 10 tips to help nonprofits collect better information, communicate their story, and connect with donors

Document is available at www.guidestar.org/moneyforgood

Questions? Email Lindsay at [email protected]

http://www.guidestar.org/moneyforgood

mailto:[email protected]


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Bob Ottenhoff President and CEO Emeritus, GuideStar CEO, Center for Disaster Philanthropy [email protected] http://disasterphilanthropy.org/

Greg Ulrich Director, Hope Consulting [email protected] www.hopeconsulting.us

Lindsay Nichols Communications Director, GuideStar [email protected] www.guidestar.org

Thank you!


http://disasterphilanthropy.org/


http://www.hopeconsulting.us


http://www.guidestar.org/


Q&A

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For more information, including our full reports, infographics, and other tips,

please visit:

www.guidestar.org/moneyforgood

www.guidestar.org | www.hopeconsulting.us

http://www.guidestar.org/moneyforgood

http://www.guidestar.org

http://www.hopeconsulting.us


Appendix

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About GuideStar

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AP P ENDI X

To revolutionize philanthropy and nonprofit practice by providing information that: • advances transparency, • enables users to make better

decisions, and • encourages charitable giving.

GuideStar’s Mission


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Customer insights and strategy consulting Identify opportunities for clients to drive growth and social impact Focus on: • Global health • Financial services • Impact investing • Philanthropic

effectiveness

WHAT WE DO

About Hope Consulting

Experienced consultants from top-tier strategy firms Supported by specialists with deep expertise in brand, technology, and industry

WHO WE ARE

Deep Customer Insights Capabilities

Comprehensive discovery predictive approaches

quantification of market opportunity

Strategy Expertise

Powerful Analytics

Experience on the Ground

(50+ countries)

HOW WE’RE UNIQUE

GuideStar Webinar (10/09/12) – More Money for More Good: 3 Steps to Help Nonprofits Fundraise

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Transcript of GuideStar Webinar (10/09/12) – More Money for More Good: 3 Steps to Help Nonprofits Fundraise